BS"D

Good morning and a good week,

In Friday's Daily Pivot magic Trading Journal, PERSPECTIVE:, we called
Monday to a T, "Even a breather day on Monday, which might naturally
follow such an exhausting humongous move, will not only follow through
to test the daytime Trend Channel Floor, but also the blue dashes LT
Historical S/R."

Nice as it is to call them, it's way nicer to make money. In the
morning, we took a healthy bite on the way down. Got an even better
bite out of the mid-afternoon run back up.

Overall, it was a Doji day.

Enjoy and be well,

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

******************************
Pivot Magic Trading
First rule:
"Any time you don't know what
is happening, get out!"
******************************

E-mini ES H2
Monday 04 June 2012

1 = Monday opens gap-up, punching through the Pivot Resistance, and reversing with a nice red Bear
Dragonfly at the Pivot (green arrow). My gut says this Signals an Anomaly Reversal (Overnight,
bottom left chart), but I'm not sure if the S-trap cancelled the preceding-trend count.

Gotta assume a closing of the opening gap is underway and call this (orange arrow) a 2-candle 123
through the Pivot and enter aggressively. At the close of the candle, move the stop to Free Trade
and a couple of tiks. All is well.

A = DVS (pink arrow) plunges a giant red candle through the MA. The position is in Pivot Magic
Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

B = Large red inverted (Bull) Dragonfly taps, closing the gap, and pulls back. This is a Pivot
Scalp Exit Now! Signal. +/- 4.75 points

C = However, since the Volume is still pounding, some of us waited, but moments later, this
spike-through-retract red Bull Dragonfly convinced us to exit.

2 = Though it might be argued that this 123 through the Close, exiting the fog with strong Volume,
is an all systems go, PLEASE NOTE: That's the 6th red candle in a row of a thin line trend.

The move is wrung out; Price Action must soon exhaust and return to retest. Pass.

3 = The Close Support holds. This glob (orange circle) contains several possible signals, some up,
some down. The Volume, which has already drooped somewhat, is most inconsistent and soon dies off
to lunchtime lows.

Lunchtime drift tumbles to bounce on re-enforced (Historical S/R, blue dashed line) S1 Support.

4 = Double Bottom (or even a Failed TTT?) bounces off the S1. Nowhere near sufficient Trading
interest/Volume to suggest entry.

A large white Bull Dragonfly not only continues the Multi-bottom breakout limit, but constitutes a
Reversal in it's own right. BTW, Resistance at the Close is theoretically untested by the mush at
= 3, above.

D = Brief DVS boosts (blue arrows and red) form a TELL. Some young Turks have leaked the BB's plan
for when they come back from drinking and scheming lunch!

Finally, on the 4th candle (our breakout waiting limit) the Volume jumps to life (red arrow), and
we are pulled in on a giant white candle. At the close of the candle, move the stop to Free Trade
and a few tiks. Anticipate a Pivot Scalp exit signal next. Be sharp.

E = Large white candle pierces the Close and stalls in the fog. We hate hanging out in the green
fog Ambush Zone. Thus, even though the penetration would not normally be deep enough to elicit it,
move the profit-locking stop under the Close. Another risk-conservative choice might be to follow
my convention and to slip the stop into the small breakaway gap.

F = Giant white Bull Dragonfly kicks firmly off the Close. We add contracts.

The position closes in MPG violation. Again, my convention looks good. Slip a mental stop in the
small exhaustion gap.

G = Late-in-the-Move DVS (pink arrow) spells "end of move". Six white candles in a row suggest the
same. But the giant top wick stretching vainly toward the Pivot and yielding 1.50 points fairly
proclaims, "exit now or on the next candle with less profit!" +/- 6.50 points

Volume dies, and Price Action sags to trade out at the Close for a Doji day.

PERSPECTIVE
(Daily, bottom right chart)

Monday taped a vaguely red, large, Doji breather day candle, testing
the Historical S/R, market low (light blue dashed line).

Won't take much to sink the market deeper. Sure am glad we're day
traders, not investors.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Monday's PMT Chart: